Please keep in mind this conference is being recorded. I would now like to hand the conference over to your speaker, John Tinker, Vice President of Investor Relations. Please go ahead.

Thank you, operator. Before we begin our prepared remarks, I’d like to remind all of you that the following discussion contains forward-looking statements. These forward-looking statements include comments about our plans, expectations and prospects and are based on our view as of today, November 8, 2022. Our actual results in future periods may differ materially from those currently expected because of a number of risks and uncertainties. These risks and uncertainties include those outlined in our 10-K, 10-Q and other filings with the SEC, which you can find on our website or at www.sec.gov. We disclaim any duty or obligation to update our forward-looking statements to reflect new information after today’s call. We will be discussing non-GAAP measures during this call, which we have provided reconciliations in today’s press release and on our website. Please note that we will be referring to slides on this call, which are also available on our website, www.comscore.com, under Investor Relations, Events and Presentations. I’ll now turn the call over to comScore’s Chief Executive Officer, Jon Carpenter. Jon?

Thanks, everyone for joining us this afternoon. We’ve got a lot packed into the three months since our last call and I’m excited to update you on the progress that’s been made across our organization. As I discussed in the second quarter earnings call, comScore’s got an unmatched data set, which enables our entire business allowing us to measure media consumption across platforms and enables our clients to drive insights and outcomes based on what we as consumers are up to. We’re adjusting data from more than 200 million mobile devices, 150 million desktops and more than 50 million connected TVs. Additionally, we’ve got data coming into us daily from 75 million set-top boxes, and we’re also the world’s movie measurement company tracking box office results across more than 175,000 screens at more than 30,000 theaters across 75 countries. All of those devices and screens give us an unmatched view into the hundreds of billions of hours of content consumption so far this year in the U.S. Through the first nine months of this year, U.S. consumers viewed more than 170 billion hours of linear TV and spent over a billion hours watching movies that’s not at home on our couches, but back at the theaters. Audiences generated more than 200 billion engagements on social media yielding more than 40 billion hours spent scrolling Instagram, tweeting, and going viral on TikTok. Consumers are also gaming more than ever, more than a billion hours, proving just how vital that medium is for marketers and advertisers. It’s clear that today’s consumer is more interconnected across all of these mediums than ever before. And at comScore, we’ve got a lens into all of it. It’s that holistic view of the consumer that allows us to understand and unpack the interconnected ways in which…

Thank you, Jon. Total revenue for the quarter was $92.8 million, slightly up from $92.5 million in the same quarter a year ago. Adjusted EBITDA was $11.7 million, up 4% from $11.3 million a year ago, resulting in an improved adjusted EBITDA margin rate of 12.6%. When we look at revenue growth by solution group, Cross Platform Solutions revenue of $40.4 million, grew 14% from $35.4 million in the prior year. This growth was driven in large part by double-digit growth in our local and national TV businesses. We also saw continued growth in our movies business, which was up 10% from $7.9 million in the third quarter of last year to $8.7 million this year as the business continued to rebound following the pandemic. We expect revenue growth from the movies business to level out in the fourth quarter as most theaters had reopened by the end of last year. Revenue from Digital Ad Solutions of $52.4 million was down 8% compared to $57 million a year ago. The decline was primarily driven by a couple of factors. The first, our activation business was down nearly 20% year-over-year, building off of a trend that we started to see late in the second quarter as the broader advertising market continued to soften. In addition to activation, we saw pullback in the quarter and our custom digital solutions, which tend to be discretionary and more bespoke in nature. The combination of these two factors created a larger than expected drag on our Digital Ad Solutions revenue for the quarter. Now let’s turn to operating expenses as there’s a bit to unpack there. We reported total operating expenses of $149 million for the quarter, which primarily driven by two items, the restructuring costs of $5.8 million that we incurred in connection with…

Thanks, Mary Margaret, and thanks everybody for your time this afternoon. Operator, if there are any questions, let’s open up the line.

Thank you. At this time, we will conduct the question-and-answer session. [Operator Instructions] Jason Kreyer of Craig-Hallum. Your line is now open.

Hey [indiscernible] on here for Jason. Just a couple questions from me. First, just wondering if you could help us better understand your path to profitability and kind of the levers that you control and don’t control, your cutting costs and renegotiating contracts, but there’s also some macro pressure on the top line. So just trying to get a better sense of the risk to some of the profit targets you’ve laid out.

Yes. I think it’s consistent with what you said in terms of a more disciplined focus on the cost line coupled with the syndicated nature of our product offering, especially when it comes to our syndicated digital product, as well as our syndicated comScore TV products. The mix of revenue coming from those product lines coupled with the efforts that we’ve made to focus the business more intently and stay disciplined on the cost line, I think are the key factors there that provide us to the path of profitability that we’ve outlined.

Perfect, thanks. And then lastly, just wondering if you could kind of give us a sense of the cadence of digital here over the last few months. Just trying to better understand how much of that has been macro related versus how much is more of just comScore specific.

Yes. I think the – and Mary Margaret can chime in here, but the lion’s share of what we’ve been seeing is largely been macro related again our activation business we commented on the second quarter call that in the second half of June we started to see a bit of a pullback across the platforms on the audience targeting side of the business that carried over into the third quarter. And we’re expecting that to continue and be lower than our expectations were originally in the fourth quarter. That coupled with some of the custom work that we do that is arguably more discretionary in nature, our expectations are that the custom digital work there that we’ll do will remain soft as we kind of work through year-end kind of macroeconomic concerns.

All right. Thank you.

Thank you.

Thank you. [Operator Instructions] Our next question comes from Dan Medina of Needham. Your line is now open.

Hi there. It’s Laura Martin sitting with Dan on his call. So maybe I’ll ask a couple, really excellent cost control here. I guess, one of the questions I have is, do you think you can maintain that kind of cost control sort of flat into next year or do you think that you have to hire? It does feel like there’s a lot of talent coming available from Twitter, Google, and Facebook as they start to lay people off around now. And so there might be some good talent available next year. And then my second one is on movies. This movie number is really an upward surprise, so it’s up 10% and I assume China hasn’t opened. So do you think the darkest days on movies are behind us because up 10% is pretty impressive. Thanks.

Hey Laura, thanks for the questions. Yes, look on the talent front and on the cost front, we feel pretty good about the path that we laid out in terms of the restructuring plan that we announced, which did contemplate if you will a rebalancing across the organization that, that did afford us the ability to make the right investments in the right areas, including areas around techno – engineering talent, for example, data scientists, for example. Those are areas where we know we want to continue to invest in, but the cost plan that we outlined in our announcement back in September really contemplated the balance of readjusting the portfolio on that front. And so we feel good about our ability to deliver on the margin goal that we’ve outlined for next year. That’s one. And then on the movies, look, we feel really good about our positioning in the movies business. It’s rebounded nicely. And the feedback that we’ve gotten on some of our recent product rollouts has been really positive. And so we’re excited about the position there. As Mary Margaret commented, we’re likely to see a little bit of a – we’re not anticipating that kind of growth rate in the fourth quarter, just given we’ll be comping some of the post-pandemic rebound. But again, the strength of that, that business coupled with our focus on the product front there, I feel really good about how we’re positioned.

And I assume all of we’re not getting any money from China, so we don’t have a downdraft from that in our future, right?

That’s right.

Cool. Thanks.

Thank you.

Thank you. This concludes our Q&A session. I would now like to turn it back to Jon Carpenter for closing remarks.

Thanks a lot, operator. Thanks, everybody on the call and I’m sure we’ll be talking to many of you soon. Thank you.

Thank you for your participation in today’s conference. This concludes the program. You may now disconnect.